00:00This company sells wine in the States for about $30 a bottle.
00:08Now they're preparing to raise prices.
00:10No one wins by these tariffs being put in by Trump.
00:15Trade wars are really bad because they create uncertainty and it's the end consumers that
00:20have to pay more.
00:23From a glass of red to Wagyu, this farmer was shocked to see the US President single
00:28out Australian beef.
00:30I was momentarily terrified about the implications for that but it's since been clarified that
00:35it is just a 10% tariff.
00:38Meat, including beef, is our top export to the States, worth $6 billion.
00:44Precious gems and metals are worth more than $3 billion, while we also export a lot of
00:49medical products to the US.
00:52Gold and plasma and vaccines are exempt from these tariffs for now.
00:57On the flip side, fashion labels selling garments into America will have to raise prices
01:02there.
01:03From a small brand that's got a small loyal following in the US to larger brands like
01:08Zimmerman or Cotton On.
01:10Many of the industries impacted by these tariffs, like beef and wine, are only recovering from
01:16sanctions from China.
01:18Economists say the biggest risk to Australia now is if this situation hurts our biggest
01:24trading partner.
01:25However, there are possible upsides for our economy too.
01:29The cheap product that can't find its way into the United States is likely to find its
01:33way here and that means inflation will be driven lower and that could mean another cut
01:38to interest rates by the Reserve Bank in May.
01:41A local whiskey brand is already seeing the bright side as Australian drinkers boycott
01:46American bourbon.
01:48People are discovering us and saying, you know what, my money doesn't need to go over
01:51to a multinational back in the States the way they're carrying on at the moment.
01:55Let's keep it in Australia.
01:56After today, many people might need a stiff drink.
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